LIC
09/02/2012 12:10
HALFYR
REL: 1210 HRS Livestock Improvement Corporation Limited (NS)
HALFYR: LIC: Farmer cooperative announces half year result
Uptake and innovation underpin half year result
Dairy farmer co-operative, LIC, today announced a half year result which
reflects increasing farmer usage of LIC products, and demand for a growing
range of innovative solutions designed to make dairying more efficient and
productive.
For the six months to November 2011, LIC achieved revenue of $120 million
compared to $112.1 million for the same period in 2010.
Delivering the result, LIC Chairman, Stuart Bay, said it was very satisfying
in his last year heading the Board to report on a period when some of the
long-standing frustrations of dairying became simpler yet more sophisticated.
"The result reflects farmer demand for our genetics, our world renowned
Artificial Breeding Service and herd improvement products but the last six
months has been significant because we've provided solutions for some jobs
that can be more frustrating, like
o Herd testing. Farmers undertake herd testing because it provides a window
to cow health and performance but a new software program, MINDA Milk, takes
it a step further with a range of easy to understand graphs which take all
the guesswork out of assessing the performance of the herd.
o Reproductive solutions. Cow fertility is an issue around the world and LIC
is now working with farmers to understand the levels within their herds so
the farmer cooperative can provide them with a tailored solution to improve
their incalf rates.
o BVD testing. The bovine disease BVD is a silent killer of productivity in
a large percentage of dairy herds - until recently it was expensive and time
consuming to test for it, but LIC recently introduced a bulk test, in the
milk vat, which tells farmers if it's present, so they can work with their
vets to treat or cull the carriers.
o Oestrous detection. Knowing when a cow is fertile and should be mated is a
source of frustration and challenge for many farmers but LIC is now into the
second year of a commercial trial on an new product, called EZ Heat, which
identifies when a cow is on heat, so farmers can confidently put cows up for
artificial breeding.
o Parentage identification. Knowing which calf belongs to which cow is vital
on dairy farms - made more difficult as the size of herds grow, and this has
lead to a high level of demand from farmers for LIC's DNA parentage service.
"Farmers are telling us they're delighted with new ways to make old practices
less time-hungry and more reliable, and this support is evident in these
financial results," Stuart Bay said.
"It is also clear that farmers are focusing on improving productivity on farm
and see the value LIC products deliver, with activity levels up for genetics,
herd testing, Protrack, ear tags and disease tests."
Summary, Half Year Result
Revenue for the six months to November 2011 was $120.0 million, compared to
$112.1 million for the same period the previous year. Underlying earnings
were $28.0 million (which compares to $24.9 million in 2010/2011).
LIC's business, particularly artificial breeding, is highly seasonal. Half
Year results, since they incorporate the majority of the AB revenues, but not
a similar proportion of total costs, are not indicative of the second half
result nor, therefore, the full year result.
The Balance Sheet remains strong with total equity of $199.7 million compared
to $191.4 million at the same time last year.
Compared to November 2010, the key changes in the balance sheet are:
Investments and derivatives $10 million more than last year due to the loan
to Agria.
$8.3 million increase in fixed and intangible assets, reflecting LIC's strong
ongoing capital expenditure programmes.
Total operating cash flow for the six months was a net cash outflow of $1.3
million which compares to $11.9 million net cash outflow in the previous
year, an improvement of $10.6 million.
Stuart Bay said it is gratifying to see the resurgence of confidence to the
dairy industry. Recent favourable climatic conditions throughout New Zealand
give confidence that the second half trading conditions for LIC will remain
positive.
Ends
For further information contact Clare Bayly, LIC Communications Manager,
phone 027 499 8862.
End CA:00219348 For:LIC Type:HALFYR Time:2012-02-09 12:10:53
(20min delay)